Money Is Not Evil

Money is not evil

In 2003, Mike Tyson, a man once celebrated as a world heavyweight boxing champion and known for crushing his opponents inside the ring, shocked the world when he declared bankruptcy with 30 million dollars in debt. This was especially perplexing when one considered that over the course of his career, Tyson had accumulated more than 300 million dollars. His financial downfall raises a profound question about money itself: if money is so alluring that most of our decisions seem to revolve around acquiring it, why do so many of us still struggle with managing it?

Tyson’s story is not unique. Across the United States, pocketbooks are strained under the weight of record-high credit card debt—a burden that most often falls on the most vulnerable among us. Though these figures are often cited in reference to the US and UK, they force every one of us to reflect on our own relationship with money. For many, money appears to have a life of its own. It flows into our lives only to vanish quickly afterwards, sometimes leaving us in a situation of financial vulnerability that makes us more susceptible to the allure of get-rich-quick schemes or charismatic gurus who promise that all the answers lie within a costly course or flashy seminar.

At its core, though, money is best understood as an expression of value. Think about the last time you made a purchase, whether it was from a giant online marketplace like Amazon or simply paying for your monthly phone bill. In every transaction, you exchanged money because you attributed a certain value to the product or service. The market sets these values, but it is our personal judgment of worth that drives our decisions. When money is equated with value, it transforms the narrative from one of morality—"money is evil"—to one of exchange. A wealthy person has not necessarily “evilly” acquired their fortune; they have simply been able to produce or exchange value on a scale that others might not have. Conversely, many brilliant ideas or services end up undercapitalized simply because the value they held wasn’t properly recognized or harnessed in financial terms.

However, understanding money as the expression of value does little to immediately resolve the challenges faced by those living paycheck to paycheck. After all, money circulates in our lives through our income and expenses, and a useful way to deconstruct this is by thinking of it as a balance between production and consumption. In the simplest terms, we earn money by producing value—whether that’s through our job, our skills, or even creative pursuits. Then, we spend that money on consumption—the things that we want and need, from groceries to entertainment subscriptions.

Consider your own financial experience: each time money enters your life, it represents some form of production, but each time you spend it, money leaves because it has been consumed. One of the more illuminating ways to gauge your financial health is by considering your net worth, which essentially reflects the imbalance (or balance) between your capacity to produce value and your tendency to consume. And it is perhaps in our consumption habits where the most significant problems arise. For example, studies have shown that a substantial majority of American workers—nearly 78%—live paycheck to paycheck, while even among those earning over six figures per year, about one in ten still finds themselves in this precarious situation. The stark reality here is that no matter how much you produce, if your consumption habits aren’t in check, you might still find yourself financially unstable.

Much of the dialogue around financial struggles evokes images of the so-called “rat race”—a relentless, exhausting cycle where one is always scrambling to earn more money in order to keep up with mounting expenses. This rat race is not about despising the traditional nine-to-five job per se; it is about the unending pressure that comes with living financially on the edge—a state where one missed paycheck or unexpected life event can send your finances spiraling out of control. When every dollar is accounted for and there is little to fall back on, even a minor financial setback can compromise the security of your entire lifestyle.

The psychology behind our financial behavior is as intriguing as it is problematic. Many of us are unknowingly trapped by cognitive biases like the “ostrich effect”—the tendency to avoid confronting our financial realities. How many times have you walked past your bank statement after a night out, dreading what the numbers might reveal? Or fallen into hyperbolic discounting, where the immediate satisfaction of spending a little extra comfort outweighs the long-term benefits of saving? There’s also the powerful influence of social proof; if everyone around you is spending more on the latest gadgets or luxurious lifestyle, you might feel compelled to follow suit, defining your self-worth by the possessions you own rather than what those items signify about your true value.

Yet it’s not all doom and gloom. Recognizing the problem is the first step toward gaining control over your financial destiny. Many financial experts and educators stress the importance of introspection when it comes to money. Ask yourself: “What is my relationship with money?” One practical method involves tracking your expenses in detail. By meticulously journaling what you spend—dividing your expenses into categories like housing, food, transportation, and entertainment—you can begin to see patterns that may reveal the root of any financial imbalance. With this newfound clarity, budgeting becomes a tool that not only controls consumption but also frees up capital for savings and investments. A foundational principle in personal finance is to live below your means, ensuring that you always set aside a portion of your earnings for emergencies. Financial advisors commonly recommend building an emergency fund that covers three to six months of essential expenses to cushion you against unforeseen catastrophes, such as job loss or medical emergencies.

But while managing consumption is crucial, the flip side of the coin—enhancing production—is equally vital. Many financial content creators and experts focus their attention on the art of frugality and budgeting, and while these strategies prove effective for many, they sometimes overlook the importance of increasing one’s production capacity. Whether you are working a traditional job, running a small business, or creating content on digital platforms, the ultimate goal should be to generate more value and, correspondingly, more income. For instance, some influencers or entrepreneurs have grown their wealth exponentially by leveraging the power of the internet. Successful YouTubers, business owners, and innovators are all examples of individuals who have multiplied their production capacity by reaching broader audiences and capturing emerging markets.

Consider the entrepreneurial route—it is fundamentally about identifying a problem in society, crafting a solution, and then scaling that solution in a way that delivers substantial value to the market. This process, when executed effectively, can propel one’s income far beyond the limits of a traditional career. That said, entrepreneurship does not come without its own set of risks and challenges; it requires not just a brilliant idea, but the discipline to manage both production and consumption efficiently.

So where does that leave us? It leaves us with a dual challenge: firstly, to gain a deep and honest understanding of our own consumption habits, and secondly, to explore ways in which we might enhance our production of value—be that through career advancements, creative projects, or entrepreneurial ventures. Without rectifying the underlying issue of consumption, even significant earnings can end up evaporating before one has a chance to build real financial stability.

In wrapping up this reflection, it’s clear that the narrative around money must shift—from viewing it as a cause of all evil to recognizing it as a tool that can either build or break us, depending on how we use it. Whether you’re a professional athlete like Tyson, a high-earning professional in a cramped city apartment, or simply someone trying to break free from the chains of credit card debt, the principles remain the same: produce value, manage your consumption carefully, and always be mindful of the broader picture.

As you contemplate your own journey with money, remember that the decisions you make today regarding spending, saving, and investing are the building blocks for your financial future. Reflect on your habits, understand your biases, and consider both sides of the equation—production and consumption—to craft a strategy that not only keeps you afloat but propels you towards financial success and freedom. After all, whether it’s riches or the struggles they bring, money is an ever-present player in our lives—and how we manage it is the real game changer.

The more you understand these dynamics, the better positioned you will be to break free from the cycle of living paycheck to paycheck, to build a safety net against the unexpected, and to ultimately harness money as a tool for personal growth, rather than viewing it merely as a fleeting reward or a source of endless anxiety.